What type of activities does OMB Circular A-76 relate to?

Prepare for the Society of Defense Financial Management Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Ready yourself for your exam!

OMB Circular A-76 specifically addresses the performance of commercial activities by federal agencies and sets the policy for determining whether such activities should be performed by government employees or contracted out to the private sector. This circular aims to ensure that the government operates efficiently and effectively while promoting competition and the use of commercial resources when appropriate. It provides a framework for conducting cost comparisons and applying fair and transparent processes for deciding how commercial activities can be best managed.

The focus on commercial activities underlines the government's commitment to efficiency, accountability, and cost-effectiveness. By regulating how these activities are managed, OMB Circular A-76 helps prevent unnecessary expenditure of taxpayer funds while encouraging better service delivery, either through public or private means.

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